Project Profile on Egg Powder – Value added poultry product

Mott MacDonald iNDEXTb

Sector Sub - sector Profile No. Project Title

Agro and Food Processing Food Processing AF-15 Egg Powder – Value added poultry product

Project Description
The proposed project envisages setting up of an egg powder unit. Eggs are dried to preserve the surplus eggs to avoid spoilage. Drying of eggs is an economical method of preservation. The dried egg powder can be stored and transported without refrigeration at room temperature. The product is stable and has a long shelf life. In the drying process, the bulk and weight of raw eggs are reduced. This results in less transportation cost and sufficient supplies to remote places with convenience. Product Application Egg powder is used in fast food preparations, ice-creams, cakes, cookies, noodles, doughnut etc. In fact it can replace the use of fresh eggs in these food items, which would offer convenience and ease of handling as against shell eggs. Apart from whole egg powder, yolk powder and Albumen flakes can also be made. Albumen flakes are free from cholesterol and have also application in printing and other natural protein applications.

Market & Growth Drivers
   World egg production in the year 2005 was estimated at 60 million metric ton. India ranks fifth after USA, with a production of nearly 2.5 million metric tons of eggs in 2005. The production cost of eggs in India is lowest in the world. The cost for producing one egg amounts to INR 1.11 (US$ 2.55). The estimated domestic demand of Egg Powder is around 1000 MT, which is largely consumed by Armed Forces and bakery industry. However, with increased availability of Egg Powder, the household demand is expected to grow.   Egg powder has an excellent export potential in countries like Germany, Austria, The Netherlands and Republic of Korea. Ovobel Foods limited and SKM Egg products Exports (India) Limited are potential players in Indian market. Ovobel Foods Limited is a company in collaboration with Ovobel N.V, Belgium. SKM Egg Products based at Tamilnadu process around 1.2 million eggs every day. Growth Drivers  Changing food habits have increased egg and egg products consumption in India, leading to an increase in the domestic market for both. This will be further increased in coming period as egg is the cheapest source of protein for the masses and its consumption has become common.  Increasing number of nuclear families in India, particularly in urban and semi urban areas, and increasing number of working women in the country has increased demand of Egg powder.

AF-15

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but owing to the difference in the production and consumption.  Nearness to Gulf and Far East Asian countries. the mixture is filtered and stored in storage tanks at about 4 C and then it is taken to tabular heater. which is then packed in polylined boxes. Therefore it is quite logical to process eggs in surplus areas and at the time of glut.Project Profile on Egg Powder – Value added poultry product Mott MacDonald iNDEXTb Why Gujarat?  Availability of raw material (Gujarat’s average egg production is approximately 400 million eggs per year) in the state. The material which comes out of high pressure spray drier is not only in dried form but also in powder form. rail.  Well developed transport infrastructure like roads. which have good export potential of the product. Egg Yolk Filtering Cooling (PHE) Liquid Whole Egg Holding Spray Drying Egg Yolk Powder Packing Storage below 20oC Storage at Ambient Temp. port and air connectivity with main egg producing areas in the state. Major egg producing areas are near to major consuming centers in South Gujarat and Maharashtra. Egg Albumen Filtering Cooling (PHE) Liquid Whole Egg Holding Spray Drying Egg Albumen Powder Packing Hot Room Storage at Ambient Temp. AF-15 2 . wherein it is dried at about 65 C for 8 to 10 minutes and it is filtered and passed to high pressure spray drier with the help of high pressure pump. After removal of shells.  There is a regional and seasonal imbalance of demand and production of eggs. which offers good opportunities for development of domestic as well as export market. A typical manufacturing process flow is shown below: o o Eggs Breaking Shell Shell Dryer Dried Shell Packing & Storage Grit Whole Egg Filtering Cooling (PHE) Liquid Whole Egg Holding Spray Drying Whole Egg Powder Packing Storage below 20oC Storage at Ambient Temp. Technology / Process Manufacture of dried egg powder starts with breaking of eggs and removing egg-shells. the option of processing is worth exploring. The average yield is around 80%.

60 10. the estimated term loan amounts to INR 64.. Plant & Machinery Misc. Thane SSP Pvt. mt of land with an proposed built up area of 2000 sq. Ltd.65 million is the working capital margin which adds upto total capital cost of INR 90 million.Project Profile on Egg Powder – Value added poultry product Mott MacDonald iNDEXTb Plant and machinery The list of main plant and machinery required for the proposed unit is summarized in the following table: List of Plant and Machinery Sr.80 84.00 55. AF-15 3 .7 million. 1 2 3 4 5 6 7 Cost of project Land and Land development Building & Civil works. Haryana SSP Pvt.65 90.05 5. Mumbai SSP Pvt. Haryana Shirsat Electronics. The unit being proposed to cater to international demand is suggested to have a Debt equity ratio of 2. The total fixed cost of the project is estimated at INR 84. No. Ltd. Haryana Particulars Quantity Suppliers Suggested Plant Capacity & Project Cost Estimated project cost for manufacturing of Egg Powder having 1250 Tons per annum plant capacity is INR 90 Million (US $ 2 Million). the proposed project will require an approx 8000 sq. 1 2 3 4 5 6 7 Egg breaker Centrifuge Filter Tubular heater Balance tank High pressure spray drier Cyclone (fan and exhaust) 2 3 2 2 1 2 1 SSP Pvt. Estimated Project Cost & Means of Finance Sr. No.35 5. Ltd. Mumbai Parksan Filters Pvt.90 4.30 90. Thus.00 3.00 8 9 25. Fixed Assets Preliminary & Pre-operative Provision for contingencies Total Fixed Assets Margin Money for working capital Total Means of Finance Promoters contribution Term loan Total INR in million 5.3 million and Equity at INR 25.70 64. mt.5:1. Ltd.00 As indicated above. Haryana Geetha Food Engineering.35 million and INR 5. Ltd. Considering 150 working days in a year the unit is proposed to have an installed capacity of 1250 TPA.

Vadodara. the suggested Debt Equity Ratio for the proposed project is 2. The unit will require registration of its products with Foods and Drugs Administration (FDA) in exporting countries. by filing Industrial Entrepreneur’s Memorandum (IEM).76 1. Proposed location can be in the district of Surat. No A B C D E Financial Ratios Break-Even Point in % capacity Debt-service Coverage Ratio Average DSCR Return on Investment (ROI) IRR 10 years project period 25.25 Water – 234 KL/day Power – 235 KW Steam – 8 MT/hour Suggested Locations The preferred location will be Central and South Gujarat as major poultry farming activities are conducted in this area and also consuming industries market is available in these areas. Ministry of Industries and Government of India. 46% projected for a period of 10 years.50 Lac Eggs /annum Major infrastructure required Land – 8000 sq. Financial Indicators Based on the profitability projections worked out for the proposed project. key financial indicators are as summarized below: Key Financial Indicators Sr.91 2.23 1 Year 43.12 28. Bharuch. apart from registration with Indian and state food administrations. The IRR (Internal Rate of Return) for the proposed project is approx.23 2. Project Time Line The proposed project will have project timeline of 4 to 6months for availing necessary clearances from concerned authorities and will have approx. AF-15 4 .69 As perceived from the Project cost and Means of finance table.79 st nd rd 2 Year 38. 10 to 12 months period for implementation. as it will have plant and machinery investment of more than INR 10 million.44 46% 3 Year 34. Ahmedabad and Anand. Valsad.47 31.Project Profile on Egg Powder – Value added poultry product Mott MacDonald iNDEXTb Raw material Eggs – 312. Clearances Required The proposed unit will have to register itself with Secretariat of Industrial Approvals (SIA). Man power required .mt.10 2.5:1.

The unit will register itself with MOFPI for availing subsidy benefits.Project Profile on Egg Powder – Value added poultry product Mott MacDonald iNDEXTb The most critical aspect of this product will be its shelf life for export consumers and hence there will be need for meeting FDA regulations in consuming countries and Codex standards followed by them. The unit will also register itself with RBI. DGFT and with APEDA as registered manufacturer exporter to avail export incentives. Agencies to be contacted Industrial Extension Bureau Mott MacDonald India Gujarat Agro Industries Corporation Ltd AF-15 5 .

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